Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Single best idea is,
Speaker 1: if you're in the equity market, follow bonds. You learn
Speaker 1: this always the hard way by enjoying losing money. It's
Speaker 1: an inverse relationship. Price up, yield down, price down, yield up,
Speaker 1: and this morning, decidedly it was price up, yield down.
Speaker 1: There was some real tension in the market in the
Speaker 1: five six seven am hour. It got a little bit better,
Speaker 1: but frankly, as the market's open as we tape this
Speaker 1: not so nice out there, we'll have to see. We
Speaker 1: had some good voices to talk to. The first one
Speaker 1: we talked to was Holger Schmeting, just definitive at Berenberg Bank,
Speaker 1: with a wonderful Transatlantic perspective. Holger Schmeting on tariffs.
Speaker 2: Of course, the US tariffs are not yet fully reflected
Speaker 2: in US consumer prices. There is some further upward pressure
Speaker 2: on US consumer prices to come. Also, many raw materials
Speaker 2: are telling a very different story, namely that global inflation
Speaker 2: pressures will stay a little elevated or could rise over time,
Speaker 2: and longer term simply labor shortages on both sides of
Speaker 2: the Atlantic, and also longer term in China labor shortages
Speaker 2: will probably mean in the end the rebound in wage pressures,
Speaker 2: perhaps not immediately, but say next year and thereafter. So
Speaker 2: I would not bet too much on global disinflation.
Speaker 1: Olger Schmieding of Berenberg Bank. This morning, Dan Skelley joined us,
Speaker 1: So Morgan Stanley Wealth Management, really really interesting discussion here
Speaker 1: about the allocation now, but particularly about the stress of AI.
Speaker 3: Let's listen number one. I think it's one of these
Speaker 3: many examples of dissonance at the moment. On the one hand,
Speaker 3: the market is fearful over AI spending. On the other hand,
Speaker 3: of the market saying software is going to be disrupted.
Speaker 3: So I can't explain that one in terms of efficacy
Speaker 3: versus is disruption. And look, I would say not all software,
Speaker 3: not to be that completely out of consensus, but not
Speaker 3: all software is created equal.
Speaker 1: Dan Skelle here in a four day workweekis with Morgan
Speaker 1: Stanley as well PCE inflation the back end of the week,
Speaker 1: Michael McKee saying that's a key key economic data point
Speaker 1: for maybe a fed on pause. We will see. We'll
Speaker 1: have all in economics, finance, investment, and international relations for
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